Service Corp stock price drops due to Q4 earnings falling short of expectations

LootboxPhobia · 2026-02-12T00:10:54+00:00

North American funeral service provider Service Corporation International's Q4 results fell short of expectations, with earnings per share of $1.14 and revenue of $1.11 billion both below analyst estimates. Nevertheless, the company achieved steady growth in several key metrics, with full-year earnings per share increasing by 9%. Looking ahead to fiscal year 2026, it is expected that earnings per share will be between $4.05 and $4.35.

LootboxPhobia

2026-02-12 00:10:54

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Investing.com – North America’s largest funeral products and services provider, Service Corporation International (NYSE: SCI), fell 2.9% in after-hours trading Wednesday after the company reported fourth-quarter earnings and revenue that missed analyst expectations.

The company reported an adjusted fourth-quarter earnings per share of $1.14, below the analyst consensus of $1.15. Revenue was $1.11 billion, slightly below the widely expected $1.12 billion, but up 2% compared to the same period in 2024.

Despite missing estimates, Service Corp reported solid growth across several key metrics. Comparable pre-need funeral service sales increased 11% year-over-year, while comparable funeral service sales per unit rose 3%. Quarterly comparable pre-need cemetery sales grew 2%, with a 4% increase for the full year.

“We delivered a strong year-end finish, with adjusted fourth-quarter EPS up 8%,” said Chairman and CEO Tom Ryan. “Strong top-line performance from both operating segments drove margin expansion.”

For the full year 2025, the company reported adjusted EPS of $3.85, up 9% from 2024, and generated $966 million in adjusted operating cash flow.

Looking ahead, Service Corp provided guidance for fiscal 2026, expecting adjusted EPS between $4.05 and $4.35, compared to the analyst consensus of $4.26. The midpoint of this range aligns with the company’s long-term growth target of 8% to 12%.

The company also reported strong capital deployment in 2025, including the acquisition of 22 funeral homes and 2 cemeteries in major metropolitan markets at a cost of $101 million, while returning $645 million to shareholders through dividends and share repurchases.

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